Bangalore: No matter how much you are financially savvy or frugal, at times borrowing money is just unavoidable. There are many borrowing methods which will keep you in a position to repay the money as well as manage your money but there are some which will always keep your pocket empty. This risky business of borrowing money can be overcome if you play the game elegantly and smartly. Here are few borrowing methods which you must avoid to steer clear

1. Payday Loans

Payday Loans are short term loans based on your paycheck. To take such loans, you need to apply and mention 2 or 3 pay dates on you application. After getting approved, you need to write a postdated check for the loan amount plus interest and fees. The lender will collect the balance due on your next payday. You can also rollover the loan until your next payday. The risk of these loans is that it is easy to get into it but difficult to get out. Repaying the loan with your paycheck can swallow the most of it, which just lefts you with nothing.

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